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Tiscali UK is launching a pay-as-you-go broadband service later in the spring. The 512k services cost £19.99 a month (the same as BT's recently announced BT Broadband Basic) and give punters those choice of either 50 hours online a month or 1Gb monthly limit.

Punters who exceed this limit will then pay just 2p per minute on the 50-hour package and 2p per Mb for the 1Gb package. Just in case consumers get carried away, Tiscali is capping monthly bills at £50.

It is also launching a 1Mbps broadband product for £29.99 a month, which it says undercuts similar speed services from AOL by £5 a month, BT Retail by £8 a month and BT Yahoo! by £11 a month.

Both the PAYG broadband and 1Mbps services are based on the BT Wholesale product Datastream which enables operators to use their own networks to provide the ADSL services. As a result, these products are available to around 80 per cent of UK broadband-enabled areas only.

Tiscali UK announced today that it has more than 200,000 broadband customers. The ISP declined to break down the figures to say how many were on its sub-512k services.

Anyhow, according to Tiscali this now makes it the second largest independent DSL provider in the UK, behind BT, which is approaching a million punters, and AOL.

In a statement, Tiscali said its market share has increased from three per cent in September 2003 to more than 10 per cent in March 2004, making it the fastest-growing DSL provider in the UK.

And since it is adding more than 2,000 new DSL customers every day, it reckons it's grabbing between 30-40 per cent of new UK DSL customers. ®